Closing credit accounts

FireMedic1 · ‎01-24-2022

@DJRobbieD wrote:
@FireMedic1 wrote:
@DJRobbieD wrote:
You hit it on the head... closing these cards would impact your Age of Oldest Account (AoOA) and Average Age of Accounts (AAoA). What are the ages of the rest of your accounts?
@DJRobbieDI corrected you in another thread on the same topic basically. AoOA and AAoA's are not affected with closed cards. Open and closed accounts with FICO are considered into your score.
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/SCORE-DROPPED-17-points/m-p/6478642#M194...
@FireMedic1 I didn't see your correction in the previous thread, plus my two responses were around the same time. I wasn't trying to spread misinformation, I legitimately didn't realize that closed accounts still impact your oldest/average age of accounts. I stand corrected and revised my posts.

@DJRobbieD No harm no foul. I made plenty of oops in the begining. Its all good. Were here to learn as we do each day.

DJRobbieD · ‎01-24-2022

@DJRobbieDI corrected you in another thread on the same topic basically. AoOA and AAoA's are not affected with closed cards. Open and closed accounts with FICO are considered into your score.
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/SCORE-DROPPED-17-points/m-p/6478642#M194...
@FireMedic1 I didn't see your correction in the previous thread, plus my two responses were around the same time. I wasn't trying to spread misinformation, I legitimately didn't realize that closed accounts still impact your oldest/average age of accounts. I stand corrected and revised my posts.
@DJRobbieD No harm no foul. I made plenty of oops in the begining. Its all good. Were here to learn as we do each day.

@FireMedic1 is it VantageScore that only considers active accounts in AAoA and AoOA? I'm looking my CreditKarma and that appears to be the case.

TCL: $401.4k

FireMedic1 · ‎01-24-2022

@DJRobbieD wrote:
@DJRobbieDI corrected you in another thread on the same topic basically. AoOA and AAoA's are not affected with closed cards. Open and closed accounts with FICO are considered into your score.
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/SCORE-DROPPED-17-points/m-p/6478642#M194...
@FireMedic1 I didn't see your correction in the previous thread, plus my two responses were around the same time. I wasn't trying to spread misinformation, I legitimately didn't realize that closed accounts still impact your oldest/average age of accounts. I stand corrected and revised my posts.
@DJRobbieD No harm no foul. I made plenty of oops in the begining. Its all good. Were here to learn as we do each day.
@FireMedic1 is it VantageScore that only considers active accounts in AAoA and AoOA? I'm looking my CreditKarma and that appears to be the case.

Yepper. Thats might be where you go it at.

FalconSteve · ‎01-26-2022

It depends on the exact formula, but if you have other accounts, this isn't likely to kill you. Personalyy, I would close each card one at a time in the order of when the annual fee is coming up (unless the bank will PC to a no annual fee card, then I would keep the card) and monitor Credit Karma and Experian (FICO8) each month as they report to make sure the trend is not uncomfortable.

1/8/17 Discover $18300 CL- $1k SL- AU, wife
1/26/20 AmEx Cash Magnet $35k CL, wife
2/19/20 BB&T/Truist Rewards $11k SL- impulse application
2/22/20 Citi Double Cash WEMC $2.9k-->$4.4k-->$8.4k-->$13.4k-->$17.4k-->$19.4k-->$22.4k AU, wife
3/8/20 Wells Fargo Propel AmEx/Autograph VISA $2900-->$3200-->$5000-->$8800 CL- AU, wife
3/9/20 Truist Rewards $11k SL- AU, wife- impulse app
3/21/20 REDcard MasterCard (TD Bank) $2500-->$6000-->$6500 CL
11/24/20 AmEx Cash Magnet $10k SL-->36hr-->$20k-->$35k CL
6/10/21 SoFi World Elite MC (TBOM) $7000 SL
1/19/22 AppleCard/GS $6k-->$10k-->$11k AU, wife
8/15/22 Chase freedom flex $10.3k SL-->$12.5k-->$15k AU, wife
7/5/23 Lowes/Synchrony $4k-->$10k-->same day-->$35k CL
8/2/23 Chase freedom flex $19k --> $22.8 CL
8/2/23 Discover $8k SL

Anonymous · ‎01-28-2022

I had 2 Capital ones and 2 Credit ones that I used to build my credit for roughly 1.5 years. All 4 cards had a $600 credit limit each and I could never get a CLI on them. My current scores are all now over 700. Applied with Amex and got a 2,000 CL and also applied with my CU which gave me 7,000 CL. So I closed all 4 on the spot at a 0 balance.

SouthJamaica · ‎01-28-2022

@Anonymous wrote:
This is very helpful information. Thank you.
I will still have 3 cards after closing these. Im
at 34% utilization right now. The combined credit limit of these 3 cards is $2050 - not much. I recently just opened a new account with $3K limit so it should offset.

My finances don't necessarily need the extra cash, I just don't know if I should keep paying fees on cards that im not using.

You definitely should not be paying fees on cards you're not using.